Food Prices Under Pressure as Multiple Levies Drain Trucks Moving Produce to Lagos
Food Prices Under Pressure as Multiple Levies Drain Trucks Moving Produce to Lagos
The journey of food from farms and producing communities to major markets is becoming increasingly expensive as transporters grapple with multiple levies and payments along key supply routes into Lagos and other commercial centres.
An investigation by BusinessDay has drawn attention to the financial burden faced by drivers conveying agricultural produce from communities including Iseyin, Ogbomoso, Abeokuta and parts of Ondo State to major markets such as Mile 12 and Oyingbo in Lagos and Bodija in Ibadan.
The investigation tracked more than 20 transporters and documented payments allegedly made at different points to transport unions, local government revenue collectors and other groups operating along the routes.
One of the striking findings was the reported disparity between the value printed on some tickets and the amount actually demanded from drivers.
According to the investigation, transporters could be asked to pay as much as N2,000 for tickets carrying a face value of N200, representing a tenfold difference between the printed amount and the reported collection.
In some cases, drivers reportedly encountered similar demands more than once during a single journey, adding substantially to the cost of transporting food from producing communities to urban markets.
The development raises wider concerns about the impact of multiple levies on Nigeria’s food supply chain at a time when households are sensitive to increases in the prices of essential commodities.
Transport costs constitute an important component of the final price consumers pay for agricultural produce. When truck operators incur additional expenses moving tomatoes, pepper, yam, vegetables and other commodities to markets, those costs can be reflected in haulage charges and ultimately in wholesale and retail prices.
The situation also raises questions about transparency in revenue collection.
Where the amount demanded from a transporter is substantially higher than the value stated on an official or purported ticket, questions arise over where the difference goes, who authorised the collection and whether the entire payment enters recognised government or union revenue channels.
The BusinessDay investigation documented collections involving organisations including the National Union of Road Transport Workers (NURTW), Road Transport Employers Association of Nigeria (RTEAN), local government collection points and other collectors encountered by transporters.
For drivers carrying perishable agricultural produce, delays associated with repeated collection points can create an additional problem. Beyond the money paid, prolonged journeys could increase the risk of deterioration or spoilage before produce reaches the market.
The consequences extend beyond transporters.
Farmers depend on affordable and efficient transportation to connect rural production centres with large urban markets. Traders depend on predictable logistics costs, while consumers ultimately need an efficient supply chain to keep food accessible.
Multiple and poorly coordinated collections therefore risk creating a chain in which farmers, transporters, traders and consumers all bear part of the burden.
Concerns over transport levies are not new. Previous reports have highlighted complaints from commercial transport and logistics operators about multiple collections and demands that exceed the amounts indicated on tickets.
The latest findings, however, bring renewed attention to the implications for food distribution, particularly along routes connecting agricultural communities in Oyo, Ogun and Ondo states with Lagos, Nigeria’s largest consumer market.
The issue places responsibility on state and local governments, transport unions and relevant regulatory authorities to clarify which levies are legally approved, how much transporters should pay and who is authorised to collect them.
A transparent and harmonised collection system could help eliminate duplicate payments and ensure that transporters receive verifiable receipts corresponding with the actual amount paid.
For consumers already confronting high household expenses, every additional cost imposed between the farm and the market matters.
What may appear to be a few hundred or thousand naira collected from an individual truck can become significant when multiplied across numerous vehicles transporting food every day.
Ultimately, the burden does not necessarily end with the driver at the collection point. It can travel with the produce through the supply chain until it reaches the market — and potentially appears on the final bill paid by consumers.
